the most well known, angela merkel, julia gillard and others. that does it for us. "cnn newsroom" continues. blackmail, sex, scandal. allegations involving the catholic church swirl as the pope gets ready to leave. i'm brooke baldwin. the news is now. fresh off maternity leave, yahoo!'s new ceo tells employees work from the office or quit. we'll discuss. plus, nascar back in the spotlight, as danica patrick sizzles and 50 cent strikes a chord about race in racing. and never a dull moment when piers morgan schmoozes with celeb. >> give me a big loser face. >> piers will join me live on seth macfarlane, the oscar

parties, and what surprised him the most. hi, everyone. i'm brooke baldwin. good to be back in the chair. good to see you on this monday. let's begin with the vatican. the vatican is in damage control. accusations of sex, money, and cover-ups at the highest level of the church, just three days before pope benedict xvi steps down. two italian papers say the reason he's leaving has nothing to do with his health and much more so to do with his explosive 300 page report. among the allegations here, secrets about a network of gay priests blackmailed by a group of male prostitutes. but, the vatican says the contents of this report will, as they say, remain for the pope's eyes only. >> the holy father has decided that the acts of this investigation known only to himself remain solely at the

disposition of the new pope. >> and as you can imagine, the fallout is going global. today, one of the uk's highest ranking catholic leaders resigned as he's dogged by accusations of sexual abuse. i want to go straight to christiane amanpour, live tonight in rome. tell me what exactly is cardinal keith o'brien accused of and what does his resignation thus mean for the vote for the next pope? >> reporter: well, look, brooke, here we are standing in front of st. peter's, right there, the heart of the vatican. as you say, they are in damage control and they really did not expect that the last few days of the pope's reign were going to be swirling around these kinds of scandals and allegations. so today the pope accepted the resignation of the scottish cardinal keith o'brien. that is because of these allegations, because of all of these sexual allegations that have now been leveled against

him and publicized by the observer newspaper in england. it has to be said that o'brien has denied that. he denies that this ever happened, and he seems to be taking some legal counsel. but what he has said is that he's not coming here for the election of the next pope, for the conclave. in a statement, he said he did not want the spotlight to be on himself, but to be on the pope. so what does it mean? it means there will be one less cardinal actually here in the electoral roles, whenever that takes place. today, the pope said, yes, the cardinals could move up the date of the conclave, but didn't say when it could happen and they're leaving that until the day after the pope leaves. we won't know about when that conclave could be held, at least until friday. >> and then, christiane, speaking of the conclave, we reported on los angeles archbishop cardinal mahoney, he plotted to hide child molestation by priests. he gets one of the votes in the conclave and as we mentioned, the vatican is in damage

control. how might that change? >> reporter: well, this is another very controversial case. you know there is a big petition by catholics in the united states to get cardinal mahoney to stay home. he's been publicly rebuked by cardinal archbishop gomez of los angeles. nonetheless, he's still called a priest in good standing. this might sound unbelievable to some of the victims who he's accused of having shielded and covered up the abuse that was perpetrated on them. now, what's interesting is that here at the vatican they are now shifting any responsibility for coming to the cardinal himself. before, when there was similar allegations and similar crises, the last time i reported on one of these, which is back in 2005, it was swirling around cardinal law of boston and then the vatican said, no, he has a duty and right to be here. now they're almost washing their hands and saying it is up to the cardinal himself. but he's likely to come. >> the world is watching the vatican over the course of the

next couple of weeks. christiane amanpour, thank you very much. as christiane reported, in one of his final act as pope, benedict has changed the rules, so he's moved up the start date to elect his successor in order to have a new pope in place before the start of holy week on march 24th. a new barrage of winter weather is barreling into the nation's midsection today as the second blizzard in a week slams the region. look at this. blizzard conditions have closed highways in northwestern oklahoma. and in kansas, drivers are being warned to stay off the roads. to the west we go, denver, check it out, they're digging out after more than nine inches fell yesterday. hundreds of flights there were canceled. today, they're beginning to get back to business and that's where we go to jim snelden with me in denver. talk to me about the aftermath, the calm after the storm. >> reporter: yesterday was the storm that would not end, hour after hour, all day, about nine

inches in denver. the plows were out all night. we watched them working on the interstates. that's the case with all the main arteries around here. we sent some time in the neighborhoods and that nine inches was a heavy wet nine inches. the people we spoke to said it has been a tough time digging out. listen. have you dug out already? >> yes, i have. >> reporter: what was it like? >> it was heavy. a lot heavier than i anticipated. >> most of it is slush and that's the pain in the butt. it is like ten pounds heavier than the fluffy stuff. >> reporter: usually here, brooke in denver, we get that nice powdery snow so good for skiing. this wet snow is good for snowballs, but makes it a really difficult time digging out and clearing out. >> i'm wondering about -- there you go, you chucked it. feeling bad for your cameraman as i was thinking you would throw that his way. jim spelman, thank you very much here. it is the same situation in texas where the national guard is being called in to help

stranded drivers. listen to the wind. in amarillo, there is more than a foot of snow on the ground. the wind gusting up to 52 miles per hour. first responders are among those stranded. i want to go straight to john harris, one of our reporters in our affiliate kamr. and chad myers, let me bring you in as well. john, let me begin with you. first responders stranded. how many people are we talking about? >> right now, i tell you what, too early to really tell. we basically are in a blizzard situation at this point in time. visibilities are down to less than a quarter of a mile in many areas of amarillo itself. and the blizzard conditions will continue on, at least for the next couple of hours and we'll start to see the snow taper to flurries and the wind slowly starts to subside, but it is a -- i would call it a wintry mess of epic proportions for this part of the world. >> so john is saying it is epic at the moment in amarillo. the wind really, it sounds like that tells a huge part of the

story. >> brooke, something happened with this storm that i'm not sure that i've ever heard in my time broadcasting or forecasting. they took the snowplows off the road because it was too dangerous for the plows. that's just unheard of. >> that's not a good sign. >> what do you know about that, john? >> that's exactly right. it is basically a point where the wind and the snow is blowing around so much, and that we're seeing so many drifts on our two major highways, interstate 40 and interstate 27, that the snowplows cannot keep up with it, so they're basically closing all the highways around the texas panhandle and saying, look, if you go out on the roads, you're doing it at your own risk because the odds of somebody coming to help you, if you get stranded, are very slim at this point in time. and so at this point in time, yes, the snowplows are having a hard time keeping up with the amount of snow coming down, and the wind that is creating the drifting across the highways. >> here is my question. if we don't know how many people are stuck, the fact is they're

stuck. and if the snowplows can't get out there, how long will conditions persist like this for them to be stuck? >> we had wind gusts to 70 miles per hour. you have areas of the ground that have 3 to 4 inches of snow and drifts that are 5 feet high. and this blows across the hedge rows, blows across the plains. this is the high palestineplain. it is wide open space. you can't see for feet at this point in time. and there is 17, 18 inches of snow on some parts and blowing around like crazy. >> john harris, kamr affiliate reporter. john, thank you. and thank you. what a frightening -- frightening for the folks that are stuck. now this. jodi arias is back on the stand in phoenix, arizona, today. this is the tenth day here. you know the story. she's the woman who's charged with murdering her ex-boyfriend, travis alexander, in june of '08. she stabbed him 29 times and shot him in the forehead.

arias says it was self-defense, he attacked her. today the prosecution had a chance to grill her for a second day, asking her why she lied to detectives about killing him. >> you were thinking more of yourself when you made the statement to this detective, right? >> i'm not sure about that. >> well, other than you, who would be sure about your statement? >> god. >> well, god's not here. we can't subpoena him, right? >> i don't think so. >> you don't think so. are you sure we can't? because it seems like you're leaving the door open for that. >> objection, relevance, your honor. >> wow. if she is convicted, jodi arias faces the death penalty. now to some of the hottest stories for you in a flash, rapid fire. roll it. first up here, cranky child tugging at his or her ears,

every parent think an ear infection. new guidelines for pediatricians say not so fast. the american academy of pediatrics advises quote/unquote, watchful waiting first to see if the earache clears up on its own. overuse of antibiotics can lead to drug resistant superbugs more difficult to cure. and you like to go to ikea, bad news for you. there is some horse meat in the swedish meatballs. but before you panic, you love the meatballs, it has not been found in the united states. new york times says the store is pulling its sale of meatballs in 14 european countries. authorities in the czech republic were the ones who found it in the first place. this is part of a larger crisis in europe right now over the discovery of horse meat in beef products. and it has been one month to the day and still no sign of these two american cyclists who disappeared in peru. jamie neil and garrett hand left for a biking trip in south

america back in december. they had been documenting their trip on facebook. but jamie's twin sister says the posts suddenly stopped. >> i haven't seen a video of her since january 25th. so, to me, anything could have happened since then, you know? >> the u.s. state department is now helping in that search. and spoiler alert, spoiler alert, robin, the boy wonder, will die in a comic book that is going to be published this wednesday in issue number eight of batman incorporated, robin is bruce wayne's illegitimate son. his real name, damian wayne. he dies fighting an enemy who also happens to be his brother cloned from his dna. sadly, batman arrives too late to save him. it is now officially the day after hollywood's biggest night. and piers morgan, of course he was in the thick of things on the red carpet. who wore what?

who had the best after party? all your questions answered as piers will join me next from los angeles. don't miss it. i don'without goingcisions to angie's list first. you'll find reviews on home repair to healthcare written by people just like you. with angie's list, i know who to call, and i know the results will be fantastic. angie's list -- reviews you can trust. hi, i'm ensure clear... clear, huh? i'm not juice or fancy water. i've got nine grams of protein. that's three times more than me! [ female announcer ] ensure clear. nine grams protein. zero fat. in blueberry/pomegranate and peach.

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great takeaway from the oscars last night, no matter how perfect the stars may look, they too are human. jennifer lawrence, stunning jennifer lawrence, this pinnacle moment of her career, we should see it thus far, tripped as she was walking up the stage to receive her best actress award. after wards, talking to reporters, she showed she's not only a great actress, but also a good sport. here she was. >> the fall on the way up to the stage -- >> was that on purpose? absolutely. >> what happened? >> what do you mean what happened? look at my dress. i tried to walk up stairs in this dress. that's what happened. i don't actually -- i think i just stepped on the fabric and they waxed the stairs. what went through my mind when i fell down? a bad word that i can't say that starts with f.

>> how many people helped you? what was the process today to get to the big moment? >> the process today was so stressful. i felt like steve martin in "father of the bride," watching my house be torn apart and my whole family was getting ready and it was -- i mean, my friends stopped by. it was kind of fun, but mostly chaotic. yeah. what was the process? i don't know. i woke up and tried on the dress and it fit, thank god, and then i took a shower and i don't know what i was -- that's what i did. and then i got my hair and makeup done. then i came to the oscars. i'm sorry. i did a shot before i -- sorry. >> at 22 years old, you've got your first oscar, and you've already had two nominations. it's awfully young to have so much success so far. do you feel that this is -- is it a good thing it is coming so

early in the career? >> i hope so. yeah. i mean, i -- who knows? i guess we'll see. >> you don't worry about being -- peaking too soon? >> well, now i am. god. >> what do you say to that? qod y kudos to her. facial expressions are priceless. the man in the thick of the oscar glamour, piers morgan. piers, nice to have you calling in. i'm sure you didn't get a whole lot of shut eye after your big schmoozing at the "vanity fair" party. we have some clips. what was the highlight of the after party? >> you know what i liked about it, apart from the fact that everybody goes, every star who has won, the nominees and the legends, they go to this incredible party. what i like is a very kind of old-fashioned glamour, respect thing that goes on. when ben affleck walked in, for example, clutching his oscar,

everyone stood up and applauded. and the same for others. i think the general view for the oscars themselves is interesting, getting it from the room of all the people. it was pretty good. they thought -- i've seen the ratings, they're up from last year. it is a little bit more contemporary. i, for one, loved the performances by barbra streisand and others. you weren't quite sure who was going to win what until the end. i think overall, as far as get ing more reaction, i think the oscars went well overall. >> let's talk about the semigraceful fall up the stairs. you talked to a number of the starlets, watching the preawards show, stuff with you, and you were asking them for their best loser face. so here is a clip. >> what are you going to do if

you lose? give me your loser face? >> storm the stage. >> give me your loser face. >> no, i'm just going to go what? or i'm going to not hear it and just walk towards the stage. >> last time i saw you, you were trying to mimic my english accent. do you remember? can you still do it? >> hello, governor. >> hello, governor. what kind of accent is that? >> good. >> piers, you were asking people who were they most looking forward to seeing. who were you most looking forward to seeing? >> i actually really wanted to see jack nicholson. a fantastic clip where he meets george stephanopoulos from abc, being interviewed and in the middle of it, jack nicholson who had never met jennifer lawrence, he comes up and interrupts the interview to tell you how wonderful you are and she completely freaks out. you haven't seen that, it is a really moving momentment even for someone like her, who i asked her who she most wanted to

meet, unbelievably said al roker from the "today" show, the weather guy, who had i to have a second take on. but it summed up what the oscars is really about. how big of a star you are, however hot you are, there is jennifer lawrence freaking over meeting jack nicholson. i think she is really something quite special. all the actors were talking about not only what a great actress she is really talented, but secondly how well she conducts herself with the media, and the very funny press conference there. >> very real. >> she's a really big, big star in the making. >> what about, you mentioned, seth macfarlane. everyone buzzing over him. who did you talk to? his father and sister? >> his father and sister, yeah. >> when you have this kind of role, you have to push the envelope a bit. people saying, went a little too far. what are you hearing in hollywood? >> the general view is whether you like seth macfarlane and like what he does. if you're big into "family guy"

and love "ted," you know the risque humor you'll get with him. it is like ricky gervais at the globes. the more seth does this, the more people who perhaps aren't used to him would find him funny. for me, i found it very, very entertaining. i also love the sort of faux outrage that came about his slightly inappropriate jokes. he's not the guy who created "glee." he created "family guy." of course he's going to be inappropriate. and some of it was a bit wincing and awkward, but i like all that. what i like generally about the feel of the whole thing was that although it is being hammered by some critics, others really liked it. i think that's an indication that the oscars took a bit of a move this year to try to move away from the sort of overcozy, overstuffy feel that it had for a few years and like that. >> piers morgan, pretty great gig yesterday. >> i did. very lucky. >> fun to watch. thank you. we'll watch tonight, you're showing all the highlights, hollywood's biggest night, "piers morgan tonight" 9:00 eastern here on cnn.

thank you, my friend. coming up next, they are spending cuts so severe, the president and some lawmakers are painting a doomsday scenario and it all happens in four days. get this, one republican governor not only ripping the president's leadership here, but his own party's. i'll speak with him live next. but you're progressive, and they're them. yes. but they're here. yes. are you...? there? yes. no. are you them? i'm me. but those rates are for... them. so them are here. yes! you want to run through it again? no, i'm good. you got it? yes. rates for us and them -- now that's progressive. call or click today. (announcer) at scottrade, our clto make their money do more.re (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning

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once again, deadline pressure is weighing on capitol hill. in four days, $85 billion worth of forced spending cuts are set to begin, cuts so severe, they would actually slow the growth of the economy. let me just be straight with you. they will not discriminate hitting public housing, education, military, much more. here are just a couple of ways you can be impacted. showing the long lines at the airports, airport delays, longer security lines from the furlough of air traffic controllers and tsa workers. next, national parks. they may close, may have to shrink their hours because of this. and beef and chicken prices could go up or there could be a shortage because of a lack of food inspectors. these cuts weren't supposed to happen. they were the absurd last resort to force congress to do something else. now, some state republican leaders aren't just going after president obama for thinking up

these automatic cuts, and blasting their own party leaders for not doing enough to stop the cuts right now. joining me now is one of the leaders here, utah republican governor gary herbert. governor, welcome to you. i just -- >> thank you, brooke. >> want to run through a couple of items that the white house pointed out as they released how this would affect all 50 states. this is what they're saying your state would be affected. for example, $6.2 million would be cut from elementary and high school education funding. 400 children eliminated from head start programs. and this seems to be, to me at least, reading through the biggest hit, 15,000 civilian workers at the department of defense would be furloughed. so, you know, you read all of this, from the white house perspective, and it almost seems like the sky is falling. my question to you is, is the situation as dire as the administration is making it out to be? >> well, from what you've just told me, the sky is falling mentality permeates i think some

of the efforts here in washington, d.c. i think that is hyperbole. i think it is exaggeration. and downright on the offensive side of the line. we're not going to have those kind of critical issues happen in utah. why is it in washington we think we're going to cut some dollars, that somehow efficiencies are not going to be realized? in most of the states we had to cut our budgets, live within our means and we're getting better outcomes than we had before. we're finding ways to do more with less. bigger bang with less bucks. why can't they figure that out here in washington? >> governor, you are a state wide elected official. you look at the states here. one of the reddest states in the country and you're not only on the record criticizing the president, you're criticizing members of your own party. is this moment a reality check for the republican party? >> i think there is frustration for all governors. democrat and republican of a lack of leadership of getting things done. we have to go back to our states and get things done. why do we not get things done in washington? we constantly kick things down

the road. we have a senate that hasn't had a budget in four years. again, i think the president has an opportunity, in fact, to be the honest broker and bring people together from both parties. >> what about speaker boehner? >> speaker boehner put proposals on the table. he had two of them. they passed in the congress, which have not even been taken up in the senate. at least i think he's trying. again, the fact that we're not getting outcomes, not getting results, i have to own that as a governor. if i don't get results in my state, i'm criticized. we're not getting results here in washington, d.c. i think that's because of lack of leadership and there is blame to go around for everybody. >> governor gary herbert, state of utah, thank you, sir. we'll be watching to see what happens by midnight friday. stay with us. the situation room shows you how the spending cuts could slam the rebuilding efforts of victims from superstorm sandy. situation room, 4:00 eastern, here on cnn. the search continues this hour for the two adults and two children whose boat is missing off the coast of san francisco. live report coming up.

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a frantic search off the coast of san francisco under way at this hour for this missing couple, their 4-year-old and young cousin. it began yesterday after their 29 foot sailboat started taking on water. dan simon joins me now live from san francisco. and, dan, what do we know at this point about the search? >> reporter: -- still ongoing despite the fact it would be very difficult for anyone to survive in those frigid waters overnight. and many hours today. the coast guard just released the last communication they had with the vessel operator. this is the father. it is very short, but it paints a clear picture of what was going on. let's take a listen. >> we are abandoning ship. we are abandoning ship. >> very short, but you heard that father say they are abandoning ship.

want to bring in the coast guard petty officer pam bailen. first of all, can you tell us anything about this family? we know this is a husband, a wife, their 4-year-old son and cousin. anything more beyond that? >> unfortunately no, we don't have a lot of information to go on. we're asking if anybody has any information about this 29 foot sailboat called the charm blow to contact the coast guard so we can help fill in some of the details. all we know is there were four people on board and two young children. and we're hoping that there is still time to save them. >> and at this point, nobody has contacted the coast guard to say their loved ones are missing, a colleague from work, anything like that? >> we haven't received any reports of any missing people. if your family was going on that trip or your loved ones or friends, please contact the coast guard. we need details and help finding these people. >> thank you so much. brooke, obviously still holding out hope to try to find this family, but as the hours go on, it becomes more of a remote

possibility. it is believe ed they are 65 mis west of the monterey area, a couple of ahohours away from sa francisco, but still holding out hope. >> thank you so much from san francisco. coming up, it is here, hot topics face-off. we're talking 50 cent, and yahoo! ceo demanding her employees work from the office or else. and the first lady, her role, she's burst on the scene when it comes to pop culture. and have you seen and heard, ka-ching, this oscar swag bag? wait until you hear what celebrities got last night. my panelists are seated, all of them, in studio today. who are they? the big reveal next. on home repair to healthcare written by people just like you. you want to be sure the money you're about to spend is money well spent. angie's list -- reviews you can trust. license and registration please. what's this?

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welcome back. i'm brooke baldwin. for the next 20 minutes, we're debating the topics you'll be chatting about tonight at the dinner table, starting with history and a horrifying crash at daytona.

history first. danica patrick in the bright green car, there she is, first woman to start the daytona 500 in pole position. the first woman to lead a lap, and the first to finish in the top ten. she finished eighth. danica mania in some ways overshadowing the winner of the race, who if you haven't falled it, it is jimmy johnson, even though everyone is talking dani danica. it is what happened on saturday that had everyone's jaws on the floor. wait for it. fiery crash, sending metal, sending debris, even a tire, imagine if you're sitting in the stands, 28 fans were injured. 14 were sent to area hospitals to be treated. thankfully, yikes, no serious injuries. so will this eventful weekend help or hurt nascar's image? we have the hot topics panel, we have jennifer brett here, entertainment columnist for the ajc, ryan cameron, morning show, afternoon host. morning show. i did afternoon. you're morning. view 103. tv host and producer melanie

snare. and radio personality frank ski. so in studio, a first. so nice to have you all here. let's begin with nascar. we were chatting at break, you're our resident nascar expert, it sounds like everyone is talking nascar, talking daytona 500. but the fear is the danica thing is overshad yoeg towing the spo race. >> if you look at the footage, it is amazing watching pieces of car fly all over the place and the next day, the stands are packed, once again, with fans. >> it is ironic, in my household my wife drives way faster than i do. it is about time you had a woman in there in the top ten. >> about time. >> about time. >> what do you think? >> i think nascar, there has been a lot of wrecks in the past and fans are used to that. unfortunately with an engine block coming back three or four

rows, it is different. i've been down there in the pits. and jennifer and i were talking about it earlier, it is amazing how fast it is. it is very, very dangerous and they know that comes with the territory. >> let me play the clip. james franco at the race, he's the master of ceremonies and he's the guy supposed to stand out there with the flag and say drivers start your engines, but he ad libbed. >> drivers and danica, start your engines! >> drivers and danica. what do we think? >> james, james, james. he tried. i think he did it with the best intentions. i think he was trying to give her a shoutout, like, way to go, you're here. but it came out as drivers and you're not a driver. >> it made it seem like danica was a novelty competitor and not -- >> she's a very big advocate on the fact she's a driver first. and a woman second. >> gentlemen, start your engines, so his intent was to say gentlemen, and danica, but now it is, like, it was deaf by

sound bite. >> let's talk about the 50 cent tweet. let me read it for you. he says, damn, i don't see no black people, lol. so here you have 50 cent tweeting about a lack of diversity, if you will, at the nascar 500 -- daytona 500 crowd. do you think nascar has a bit of a pr image problem? >> they're going to have to pitch a bigger tent and grow their audience. i remember growing up in charlotte, north carolina, when nascar was like religion. i remember asking my dad as a little child, is richard petty the president because he was on every billboard, he said, no, baby, he's the king. but nascar has to grow their fan base from that. >> i kind of disagree with you. michael molden, jermaine's father, has done a lot to try to add to diversity. the african-american races that have been in those races, they just don't win. you have to win to get to daytona. you have the truck series, other series. if you're out there and wrecking cars, you're not going to go to

the next level. i've been down there in the pits. i know. you are to win have to win to g daytona. >> attached to that is the lack of sponsorship for african-american drivers. the whole thing about nascar is about the sponsorships. when you have the sponsorships, you afford the better team. it is like not having any money and having a college football team and you can't get a coach. you got to pay these people. and the best people that work the pits, the best people that build the engines and you need two or three cars on stand by, who can afford that if the sponsors are not sponsering african-american drivers. >> wasn't to moi want to move o nascar. have you heard what the ceo of yahoo! tsaid to her employees. this is silicon valley, a lot of people work at home. this is the woman who took a two-week maternity leave, back with that in the hot topics panel next. [ loud party sounds ]

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all right, so internet search giant yahoo! has undergone plenty of change lately. got a new ceo, got a new look. and new a new policy for the company's telecommuters. essentially telling the employees, come to the office or quit. yes, ceo marisa myer hoping that a change in culture will help yahoo! gain its edge back. this is part of this leaked

internal memo from tech site all things d. communication and collaboration will be important, so we need to be working side by side. that is why it is critical that we are all present in our offices. some of the best decisions and insights come from hallway and cafeteria discussions, meeting new people, and impromptu team meetings. i see all of you nodding yes. you understand face to face communication. >> i'll be honest with you, i knew once facebook hit the scene, work from home was over. >> because you would be facebooking all day? >> you can see how many people are on facebook. there is no way to track it. at work now, they can track what you do on your computer. >> facebook at work. >> always. >> it is social media. it is silicon valley. you could lose a lot of talent, who it sort of -- the way things are done, it seems like, in places like this. >> i get a job and free food? i'm in.

>> kind of awesome. >> you talk about job sharing and working from home, i hate when people job share at my work because you walk around the corner, you got some great idea for the salesperson, oh, she job shares on monday and wednesday or not here on tuesday and thursday. i see her idea on wanting people to be there in case something happens. yahoo! is struggle, wanting to get back into the game. i want my whole team there with me when i make the decisions. >> steve jobs had the same idea. look at apple now, pretty successful. >> i was surprised. i read this article on my mobile phone, which i could have done from anywhere. and it was interesting to me that they were taking this step, you just -- last year there was a reuters poll indicating one out of five workers globally telecommute part of the time. you have to wonder about the implications on the environment, if all those people were to get into their cars and go back to work. it is interesting to see yahoo! having everybody come back to the ranch. >> do we agree, though, that more face time develops as a catalyst for more, i don't know, ideas, face to face meetings? >> i agree with that to an

extent. however i feel i work from home a lot and i'm extremely productive in my home because i don't have distractions, i don't have people walking around asking what i did last weekend. i can 100% focus on the task at hand, and if i have an idea, i can pick up the phone, i can hit somebody up on instant messaging. so i feel like we also have to lend ourselves to where technology is and acknowledge the fact we can be extremely productive. and research has shown people who are happy with flexibility and happy in the workplace are going to be more productive. >> and if you can't do that at yahoo! right? can't do it at yahoo! they may go somewhere else. >> i think the other thing to understand is that it is a creative business that they're in. and creative businesses need group participation. i know and ryan will tell you, some of the best shows we have come up with have been side talk in the office. and something comes up and we're, like, there it is, boom. because sometimes you have to dialogue to get to that point. and when people are all over the place, it is hard to get

somebody's emotional call when they're on the phone. >> i want to talk fwifrt laabou first lady coming up. is there a line? and we're going to talk about the swag bags that the celebrities got at the oscars, close to $50,000 worth of goodies. wait until you hear what was in them.

the academy awards has something for everyone for last night and defer knitdefinitely everyone talking today. jennifer lawrence, lovely, the fall not so much, taking a spill here before she got the best actress award. then you have the musical numbers, the cast here of "les

mis" singing one day more live on stage. and then there is the man who is starting the evening off, seth macfarlane, he is where i want to begin our chat here. his opening monologue was, by the way, 18 minutes long. thumbs up, thumbs down on him? >> i think people should know that that's what you get with seth macfarlane. if you know his comedy, know any of his shows, he's going to push the envelope. to wake up and hear the water cooler talk and people being upset, what did you expect? >> don't they want someone to push the envelope? doesn't that get eyeballs on the screen. >> you've seen billy crystal, what? >> are you saying snooze fest. >> i think they put way too much focus on the host. who wants to watch him for 18 minutes for the opener. get the show started. it is way too long. i don't care what you're doing, i don't want to watch you for 18 minutes. >> some of the criticism is some of his jokes went a smidge too far. watch this. >> django unchained.

that was an intense film. this is the story of a man fighting to get back his woman, who has been subjected to unthinkable violence. or as chris brown and rihanna call it, a date movie. oh. oh, no. >> a date movie. i see you rolling your eyes. >> domestic violence isn't funny. presidential assassinations not funny either. he's so gifted, so talented, a brilliant clever guy. he's got more in his wheel house than domestic violence jokes, i think. >> i find it fascinating sitting on twitter, like a voyeur, watching what everyone is tweeting while watching, the role of social media, instant feedback. good or bad? it is instant. >> talking about michelle obama the first lady and what she did, this is a whole new era. they set the bar. they're the first first lady and president that have, you know, twitter and facebook. so the things that they're doing, they set the bar for these things.

i don't think george bush would say, i don't do the tweets and i'm not on the facebook, but watch this drive. it is a different era. >> is that your best bush impression? >> that's my best bush right there, take it, brooky. >> ben affleck gets "argo" best picture, he says, my gosh, am i hallucinating, it is the first lady who gave me award. beaming from the white house, that was a behind the scenes thing because of harvey weinstein. i think it broadens the discussion of the first lady. she's on rachael ray talking about -- she called her bangs, her mid-life crisis. hilarious dancing with jimmy fallon, the evolution of the mom dance. and now at the oscars. she's sort of thrust herself as the central role in pop culture. is in the modern day first lady role? >> it should be. this is why. first of all, everything has changed. what they have done is really opened the white house in more i was than one and they have shown everybody this is obtainable. we're regular people, and you can do what i do. get involved.

and i think she presents the perfect role model for that. >> did you seat youtube video where the president and mrs. obama surprised white house visitors by showing up midtour and saying, hi, welcome to the white house and there is the dog. they want to be very accessible. >> more to the point of opening up the doors, being open to -- >> i think there has been a lot of criticism for her doing that as well. people are saying, you know, they need to be more focused on our country, and on politics. and -- but she's not the one running the country. i think it is fine -- >> i don't know. i don't know about -- >> maybe not. maybe you're right. let me take a step back and think about my own, but i think it is great she's a part of what is happening in our world. >> can we talk about the swag bags? >> sure. >> if you go to the oscars, i'm sure we're all a little jealous, $47,802, what it is all amounting to. a couple of the items we pulled out. $12,000 australian vacation, $4100 week long weight loss retreat, which, by the way,

shouldn't it be weight gain, 406 hand cream, $20 clothing defuzzer, box of condoms for good measure. excess or part of the game? >> best form of advertising. if one of these celebrities uses your product, you get to say, hey, you know, so and so used my product. >> you want them to be photographed, you get money. >> i think it is a bargain for marketers, not to diminish the contributions and some people spent their last advertising dollar on this effort, but you think about a super bowl, 30-second ad that costs $3 million, $4 million, being able to stock a swag bag is comparatively a lesser investment. >> as a nation, we're talking about, don't want to say sequest rar ration, the blunt force cuts that we're facing -- >> about the 1099, you don't just get it. they're going to get -- you have to pay the taxes on this stuff. it is not just a giveaway. >> irs says put that on your tax -- >> we're giving away things to the people who can actually

afford it. it is hollywood. i'm not a hater. i would love to have all that stuff. >> we're all jealous. >> jennifer, ryan, melanie, frank, guys, thanks so much. we'll do it again. on that note, back in a moment. it's lots of things. all waking up. connecting to the global phenomenon we call the internet of everything. ♪ it's going to be amazing. and exciting. and maybe, most remarkably, not that far away. we're going to wake the world up. and watch, with eyes wide, as it gets to work. cisco. tomorrow starts here. begins with back pain and a choice. take advil, and maybe have to take up to four in a day. or take aleve, which can relieve pain all day with just two pills. good eye. by the armful? by the barrelful?

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you need an ally. hello? ally bank. your money needs an ally. blackmail, sex, scandal. allegations involving the catholic church swirl as the pope gets ready to leave. i'm brooke baldwin. the news is now. fresh off his soap opera, manti te'o says don't judge me. this as nfl teams consider making him a millionaire. plus -- >> jennifer, it's me! >> fashion face-off, michael knight, monty durham, live in the studio today, on the red carpet's best and worst. and if your kids got an ear infection, the game just changed.

top of the hour, i'm brooke baldwin. a frantic search is under way off the coast of monterey bay for a couple, their 4-year-old and a young cousin who are missing since the sailboat started taking on water yesterday. every moment is critical here as the coast guard is searching the waters, 65 miles off shore. dan simon joins me from san francisco with more on the search. dan, what do we know at this point? >> reporter: well, hi, brooke. the search is still ongoing despite the fact it will be very difficult for anyone to survive in those frigid waters overnight and several hours today. we just got the last radio communication between the father, the vessel operator, and the coast guard. i want you to listen to it now. it is very short. but you can get a sense of what is happening. >> coast guard, coast guard, we

are abandoning ship. we are abandoning ship. >> reporter: what the father is saying there is that he is abandon ship. from basically -- from listening to that, that very short clip, it sounds like he's very calm in that situation, and the coast guard told us that they have the short bursts of communication for about an hour, and throughout the entire ordeal, the father sounded relatively calm. we know that they didn't have any life preservers on the boat, that that's very distressing. and, like i said, the temperature of that water very cold. it would be difficult for anyone to survive in those circumstances, especially children. but they're still holding out hope. it is believed the ed they are s west of the monterey area, a couple of miles away from where i'm standing near san francisco and they got a lot of folks in the air, four airplanes, searching for this boat. and a couple of boats in the water. so we'll keep you updated as we

get more information. back to you. >> dan simon, thank you. we'll stay in touch with you. also now for the second time in a week, a blizzard is pounding the nation's midsection here. take a look. blizzard conditions, total whiteout here have closed highways in northwestern oklahoma, wherefore casters are anticipating 26 inches of snow and in kansas, drivers are being warned to stay off all the roads altogether. much of the same scene in texas where the national guard is being called in to help stranded drivers. in amarillo so far, 17 inches of snow is on the ground. and the wind is gusting up to 52 miles per hour. first responders are among some of those folks who are currently stranded. sex, blackmail, corruption, and gay abuse claims. all of this as pope benedict xvi enters his final days in power. a top uk cardinal has resigned, accused of inappropriate behavior toward four young men in the 1980s.

the vatican in damage control mode after it leak eed reports here of an alleged network of gay priests blackmailed by a group of male prostitutes. italian media saying it is no coincidence the allegations surfaced on the same day the pope announced his resignation. ben wedeman, senior international correspondent following the story for us from rome. ben this is cardinal o'brien. he says he submitted his resignation to the pope moments ago, only just accepted a day after this leaked report. talk to me about the timing. what to do we know about that? >> reporter: because he was approaching the age of 75, it is standard practice in the vatican for him to hand in his resignation months in advance of his 75th birthday. so they actually had it -- the pope had it on his desk, so to speak, but clearly when these

reports began to surface in the uk, he must have decided it was time to accept it. now, today, there was a press conference at the vatican, officials did acknowledge the resignation had been accepted, they, however, did not want to go into the details as to why the cardinal was resigning. >> what about this leaked dossier? what do we actually know? >> reporter: we do know that there was indeed a dossier. it was the result of an internal vatican investigation conducted by three senior cardinals, submitted on the 17th of december to pope benedict. now, the precise details of what is inside have not been made public in any form. however, two italian journalists, one working for the rome daily la republicia, another for a weekly magazine

panorama, did have access to some of its contents, it appears. and what we're seeing is that really a web of financial wrongdoing, the possibility that there is a network of gay priests and gay lay officials within the vatican, who could have been or may have been blackmailed by a network of male prostitutes. brooke, i have to stress the vatican has flatly denied the veracity of the claims in the italian media, saying quite in unusually strong terms for the vatican that these claims, these reports are unverified, unverifiable, or completely false. >> ben wedeman, thank you. once again, deadline pressure weighing on capitol hill. in four days $85 billion worth of forced spending cuts are set to kick in, cuts so severe they could actually slow the growth of the economy. and they don't discriminate. i'm talking about cuts hitting public housing, education,

military, much more. keep in mind these cuts weren't supposed to happen. they were the absurd last resort to force congress to do something else. president today urged governors gathered for a national governors association event to help stop the slashing. >> while you are in town, i hope that you speak with your congressional delegation and remind them in no uncertain terms exactly what is at stake, and exactly who is at risk. because here's the thing. these cuts do not have to happen. congress can turn them off anytime, with just a little bit of compromise. >> joining me now, chief political analyst gloria borger. gloria, look, the country, we have been through countdowns. why is this time different? >> i look at it this way, brooke, what is the default setting you would be going back to? when we have the argument over the fiscal cliff, the default was, okay, everybody's taxes are going to go up. when we had it over the debt

ceiling, well, we knew that if they didn't come to a deal on that, the full, faith and credit of the united states would be at risk. now we get to the forced spending cuts, known as the dreaded sequester, what is the default on that? well, you get $85 billion in budget cuts in discretionary, domestic spending as well as in the pentagon and there are a lots of people on both sides of the aisle for different reasons who believe, you know what, that's not such a terrible thing. so the default setting, despite what we heard about the tsa lines and all the rest, may be pretty palletable to some. and it shows you how far the dysfunction in washington has come since they came up with this plan a couple of years ago. >> now, on the dysfunction angle, look, the last time we talked about something sort of similar was fiscal cliff in december, the last congress. now we have new members of congress. my question now is how is the republican party different? >> well, this is the most interesting part of this.

i think the white house made a calculation when this whole idea was hatched that the republican party would never go for draconian cuts on military spending. and what occurred in the republican party is that you have a group of younger members who believe in budget cutting above all else, and are willing to take the hits in the pentagon so long as you get hits in domestic spending and so long as you don't raise taxes. and so i think what you're seeing is really very much a demographic shift in the republican party. you've got lots of younger members, tea party folks who are saying, you know what, this isn't the worst thing that could happen. let's do this, let's take the hit on this in the short-term, and we're going to -- it starts paving the way for more serious budget cutting. >> deadline is midnight friday. gloria borger, thank you. >> sure is, yep. taxing marijuana, thanks to an old law targeting drug

runners. entrepreneurs, a new marijuana trade can face taxes that are really high. how high? wile tell you next. the blame game begins in the bp oil spell. listen to this. 60 lawyers inside a single courtroom today. there is even a seating chart to keep them all straight. that's next. [ male announcer ] when we built the cadillac ats from the ground up to be the world's best sport sedan... ♪ ...people noticed. ♪ the all-new cadillac ats -- 2013 north american car of the year. ♪ for a limited time, take advantage of this exceptional offer on the all-new cadillac ats. you know how painful heartburn can be. for fast, long lasting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®.

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some of the hottest stories in a flash, rapid fire. roll it. it is a legal fight so huge, it requires, look at this, a seating chart in the courtroom. bp employing an arsenal of 60 lawyers to fight claims that gross negligence caused that huge oil spill in the gulf of mexico. bp is already paying $4 billion in criminal charges, but this is the civil trial and this civil trial could cost the company more than $17 billion. medical marijuana dealers are getting slammed with taxes as high as 75%. well, why? all because of a tax code provision from 1982. it bans people selling illegal substances from taking out business related expenses on their federal income taxes. medical mare yaijuana is legal 8

states. they cannot count rent or payroll as a business expense. one month to the day, no sign of these two american cyclists who disappeared in peru. jamie neal and garrett hand left for a biking trip to south america in december. they had been documenting their trip on facebook. but jamie's twin sister says the posts suddenly stopped. >> i haven't seen a video of her since january 25th. so, to me, anything could have happened since then, you know? >> the u.s. state department is helping in that search. and take a look with me, south korea's first female president. she is park gun-hye. she says the nuclear test is putting the future and survival of all koreans at risk. she also says north korea must abandon its nuclear ambitions right away, but she wants to take things step by step and build a, quote/unquote, zone of

trust. and for the first time, the u.s. government will release fbi documents involving an informant from the civil rights era. ernest witters took pictures of key civil rights moments like little rock nine, the bus protests, the assassination of martin luther king. his photographs were published in the memphis commercial appeal. he was also paid informant with the fbi and that paper sued the u.s. department of justice to shed light on the relationship. ♪ ♪ breathe how about a little janet jackson for you? tough to keep a secret in hollywood. janet jackson proved it is possible the 46-year-old singer has finally confirmed she tied the knot with her billionaire beau back in 2000 and it is is not her first well kept secret either. all the way back in 1991 she managed to hide her marriage to

renee elizanda, not just from the media, but from her own father as well. coming up, challenging science, oklahoma passes a law that lets high school students and teachers explore alternative theories to the stuff in the science textbooks. does that mean there is no correct answer on exams anymore? we're on the case next. hey. they're coming. yeah. british. later. sorry. ok...four words...black monkey? a baboon? hot stew saturday!? ronny: hey jimmy, how happy are folks who save hundreds of dollars switching to geico? jimmy: happier than paul revere with a cell phone. ronny: why not? anncr: get happy. get geico. fifteen minutes could save you fifteen percent or more. riding the dog like it's a small horse is frowned upon in this establishment! luckily though, ya know, i conceal this bad boy underneath my blanket just so i can get on e-trade. check my investment portfolio, research stocks...

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jodi arias is back on the stand in phoenix, arizona, today, for the tenth day. you note story, she's the woman charged with murdering her ex-boyfriend travis alexander back in june of 2008. she stabbed him 29 times and shot him in the forehead. arias says it was self-defense, that he attacked her. today the prosecution had a chance to grill her for the second day asking her why she lied to detectives about killing him. >> you were thinking more of yourself when you made this statement to this detective, right? >> i'm not sure about that. >> well, other than you, who would be sure about your statement? >> god. >> well, god's not here. we can't subpoena him, right?

>> i don't think so. >> you don't think so. are you sure that we can't? because it seems like you're leaving the door open for that. >> objection, relevance, your honor. >> if she is convicted, she faces the death penalty. in oklahoma, a new law could change the way your child learns science in school. if it passes the bill would require teachers to address theories like evolution and climate change and lesson plans. the bill also paves the way for students to challenge what are called universally accepted scientific theories. legal analyst sunny hostin is on the case with me in new york. and i -- let me ask you this, if this passes, be specific. how would this work? >> i don't know that i can be specific. i spent hours trying to figure this out today, brooke. i don't know that it is clear how it would work practically in the classroom. i mean, proponents of the legislation are saying that the

way it would work is children aren't -- or would not be penalized for sort of posing these alternate theories, for challenging what they see in textbooks. but in my schooling, i challenged often the way i challenge here. i'm one of those people. and i wasn't penalized for it. that is part of the educational process. so many people are saying that these -- that this is really a way to get religion into the classroom, that this is some sort of sneaky way of going about it. there have been many of these bills proposed in the past. they have failed. i would say really because u.s. courts have made it very clear that these creationist rules are really religious based and not scientifically based and there is no place for that in the classroom at this time. and so i suspect that it may not pass, it may not go all the way, but if it does, they're going to have a really difficult time, i think, practically rolling it

out in our classrooms across our country. >> okay. i suppose if you challenge something, you prove your theory, maybe that will be acceptable to teachers. we'll see if this actually passes. let me talk about the supreme court here, this rejection of an appeal in this drug case and what caught our attention is that u.s. supreme court justice sonia sotomayor, she used her comments on the case to speak out on what is described as racially insensitive remarks by the federal prosecutor. she accused this prosecutor who she did not name of fanning the fames of fear and prejudice. and my question to you, sunny hostin, how unusual is this for a supreme court justice to use remarks in this kind of way, to basically put someone in their place? >> it is very unusual, a lot of times the supreme court decides not to take appeals and they don't give any reason for their decisions whatsoever, brooke. they're talent on it. the fact that not only she sort of made these statements, justice breyer signed on to them also, but what she specifically

addressed was the issue that a federal prosecutor, i was a federal prosecutor, so i'm surprised this federal prosecutor said this in questioning in texas said, you got african-americans, you got hispanics, a bag full of money, does that tell you a lightbulb doesn't go off in your head and say this isn't a drug deal? equating the fact there were people of color involved in a transaction would lead someone to believe that it was a drug deal. so, really, really statements that oftentimes are not heard from federal prosecutors, and she wrote, i hope to never see a case like this again. i would agree with justice sotomayor, i hope to never see a case like that again. >> sunny hostin on the case, thank you. coming up, manti te'o at the nfl scouting conference interviewing with the pros. but can he shake that whole fake girlfriend thing? that's the question. we're going to go live to indianapolis right after the break. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train.

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near the bottom of the hour, i'm brooke baldwin. sports, technology, health, international news. we're hitting it all, right now. beginning with skier lindsey vonn showing off the leg injury from her spectacular crash during the super g at the world championships. here she was. she was talking to "today" show host matt lauer showing him her lovely scars. will not, she says, will not keep her from the next 2014 olympics in russia. >> honestly, the worst case scenario, if i trained a week before the games, i would be fine. >> manti te'o faces the biggest job interview of his life. the nfl scouting combine. a lot of questions about the notre dame linebacker's potential stock in the big league after he was scammed into falling for a nonexistent girlfriend. te'o talked about the hoax in front of a hoard of reporters. look at this crowd.

as he was at the combine, a hot topic with, of course, the nfl scouts. >> they all just want to know, want to hear from me, what the truth was, and they haven't really said anything about it affecting me. some guys just, you know, we just talk briefly for 30 seconds and next 14 minutes is just all plays and just getting down to business. >> rachel nichols in indianapolis for me, where manti te'o did his on field workout today. what are they taking into account, the catfishing of his past or how he looks at the combine? >> reporter: going into this event, a lot of people were looking at both, thinking, okay, how is he going to handle questions about this? the actual incident of him and the girlfriend and finding out it was fake, teams aren't as concerned about that. teams, you have to remember, in the nfl, regularly have to deal with should they have players on

their team that have off field scenarios and most of them much more serious than having a girlfriend who doesn't turn out to be real, we're talking about duis, battery charges, things like that, as the general manager of the new york giants, jerry reese said, i've seen players with a lot more issues than this issue. so it is not per se the fact that this all happened, it is how he handled it. and that press conference that you guys just showed, all around the league there was really the resounding feeling afterward that he was confident, comfortable, he took responsibility for his actions. and they were really watching to see how he would do in front of that hoard of media because it was unpredictable and they wanted to make sure when he was under pressure, he was going to be just as relaxed as he was in the one on one interviews we have seen him in. so that all went pretty well for him on saturday. today has been a little bit more difficult, as you mentioned, he's been on the field, he didn't bust out, he didn't have a very poor performance, but he's been remarkably average across the board. there is a lot of scouts and gms that would like to see him run

faster, jump a little bit higher and further, so i think that is something that is now going to become the evolving story with him, is is it going to be something that knocks him out of the first round of the draft? but not going to be something that knocks him down too far entirely? >> remarkably average, not a ringing endorsement here for the linebacker from notre dame. rachel nichols, thank you. we'll see you in indianapolis this weekend. a potential game changer for your smartphones. the nonprofit behind the fire fox web browser used the eve of the world's biggest mobile tech conference to announce it is launching a phone operating system. fire fox system is based on standard web language, so just about anyone can develop apps for it. and since mozilla doesn't have to show a profit, the phones can be chief enough to sell in developing countries. initial phones will be sold in nine countries including brazil, mexico and poland. that starts in july. ♪ she likes my tone

my cologne and the way i roll ♪ snoop dogg, video signs. we have to note that snoop now has almost 10 million followers on twitter in case you're curious. time for a little challenge. catch us if you can, snoop. low fat or mediterranean, which diet is better for your heart, you ask? researchers in spain tracked people on each diet for five years. the winner, mediterranean diet, especially one with a lot of extra virgin olive oil, apparently. the group's risk of having a heart attack, a stroke, dying of heart disease was 30% lower than the group that ate low fat diet. the new england journal of medicine has the study online today. your child is cranking, tugging at his ears, what is going on? as a parent, you think ear infection, right? that means a trip to the doctor

for antibiotics. but new guidelines for pediatricians say not so fast. elizabeth cohen senior medical correspondent, what are the new guidelines? >> the new guidelines are saying they want to make sure your child really has an ear infection. your child might be cranky, but maybe they're cranky for some other reason, even if their tugging at their ears, not necessarily an infection. even if there is fluid in the ears, that's not necessarily an infection. they're telling doctors, don't be so fast to prescribe an antibiotic, which can have bad side effects for children and telling parents, don't beg for them. don't push for them. >> if you see the ear tugging, what else would it be then? >> it could be several other things. for example, it could be a sore throat, that's one thing that sometimes happens. teething can cause ear pain. so can a cold, so can a viral ear infection, in which case anti-bottomi antibiotics won't help you. >> you have four children, what is your advice here? >> if a doctor says, i really don't think this is an ear infection, don't push them.

have a discussion, but don't push them. you may not want them. they can have bad side effects. if you feel like your child has an ear infection, you've been through this before, you know the symptoms and you want that antibiotic, really have a discussion, don't just walk out and without anything. if you feel like you need something. maybe say to the doctor, doctor, give me a prescription and i'll wait a day or two. if she doesn't get better, i'll use it. i won't use it now, i'll wait a day or two. doctors will sometimes do that. >> elizabeth cohen, thank you very much. john kerry road tests his new role today on his first trip oversees as u.s. secretary of state. kerry held a news conference today in london with british foreign secretary william hague. he urged syria's umbrella opposition group to come to crisis talks in rome. >> we are determined that the syrian opposition is not going to be dangling in the wind, wondering where the sport is or if it's coming. we're determined to change the calculation on the ground for

president assad. >> this rome meeting is the centerpiece of kerry's nine country trip to europe and the middle east. and this. ♪ don't try this in egypt. a state run news agency reports four pharmacy students were arrested doing this version, mm-hmm, you know the deal, love it or hate it, it is the harlem shake. and this is what got them in trouble. yeah, they took off their clothes in the street. they wore women's wigs. locals were so upset, they tried to attack the students. the students are charged with public indecency. that's a no-no. latest victim of europe's horse meat scandal, ikea. know the meatballs you can. inspectors found evidence of the meat in the meatballs ikea sells in europe. the company points out that all of its meatballs sold in the u.s. are made from beef and pork raised in the united states, and canada. a lot of people talking

about seth macfarlane's hosting gig last night at the oscars. but what really matters? the oscar fashion. we're going to discuss the wardrobe dos and, oh, no they didn'ts, coming up next. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine.

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from the cnn money newsroom in new york, i'm ali velshi. remember the game show "let's make a deal." ♪ >> it's time for "let's make a deal." >> what memories. a game show is what we have got going on in washington these days when it comes to the fight over spending cuts. though frankly it looks more like let's not make a deal. allow me to channel my best monty hall for a moment. i'll show you what is behind door number one, two and three. first, door number one are the

forced spending cuts. known in washington by its stupid name, the sequester, $85 billion in cuts over the next seven months, take effect starting sometime on friday, unless our elected leaders come up with a plan to replace them. we're talking about automatic 9% to 13% spending cuts to virtually every federal agency including defense. i'll come back to that later. behind door number two, a proposal put forward by senate democrats offering to replace those forced spending cuts. i'm going to tell you up front, this is another waste of time with this much chance of passing. calling for $55 billion in spending cuts, and $55 billion in new revenue, most of which would come from new taxes, tax on millionaires, the so-called buffett rule. if you think back about two months, we went through this process of imposing tax hikes on the richest americans. i'm sure you all remember how easy that was to get. i think we have already had a drink from that trough. by the way, democrats would also delay the spending cuts, these spending cuts, $55 billion,

until 2014 so question have twe fight all over again. door number three, simpson-bowles, an updated plan from the team headed by democratic businessman erskine bowles and former republican senator alan simpson, who chaired president obama's bipartisan fiscal commission back in 2010. now, the highlights here is it would cut $2.4 trillion from the deficit, the current proposal is $1.2 trillion over the next decade. it raises $600 billion in new tax revenue, tough to get, but that's what they suggest. and $600 billion in cuts to medicare and medicaid, which is where you have to get these cuts if you want to put a dent in the budget. also, $1.2 trillion in additional spending cuts. now, these are three possible scenarios, with just days to go until the sequester deadline and no sign of compromise from either side. listen. >> what's been frustrating for us is our republican colleagues

in the house of representatives particularly have taken a position, a very absolutist position, that there can't be one single penny of tax expenditures or loophole closings to raise any revenue at all. >> there is a responsible way to cut less than 3% of the federal budget. i think it is time for the president to show leadership. i think it is time for him to head to congress, a prioritized list of reductions. every governor here had to balance their budgets during tough economic times, every family has to balance their budget, isn't allowed to spend more than they need, every business had to become more efficient, tighten their belt. the reality is it can be done. >> what did he say? governor bobby jindal is wrong. throughout history governments have always racked up debt. families, do you call it a balance of a budget when you take out a mortgage to borrow a house you can't afford to buy? unless you buy your house on cash, not a lot of people do, you have to take a mortgage or wait until you're 80 years old to buy the house. he's wrong when he says cutting 3% of the federal budget won't hurt.

cuts that were spread evenly across the entire budget may not, but that's not what we're doing. we're not touching entitlements. we're only touching discretionary spending, so it is 9% cuts to nondefense agencies and 13% to defense. there are disproportionate. the reason is the funding reductions would only come from those parts of the budget that they can legally cut. that's everything from the fbi to the fda to support for the corporation for public broadcasting, big bird, if you will, and entitlements like medicare and social security would be largely protected and that's where any dent in the debt would have to be made. be careful about the things you hear from politicians in the next few days telling you what is and what isn't. i'll keep telling you what is and isn't here. 3:35 every week day from the cnn money newsroom. same time tomorrow. i'm out. tch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics.

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all right, time to talk winners and losers of oscar night. i'm not talking film. i'm talking fashion. joining me now, fashion designer michael knight, former competitor on project runway. what did you finish, fourth? >> yes. >> still, you finished. it was amazing. my friend monty durham, good to see you back in the studio. we did a little q & a ahead of time so you can get filled in on your best and worst dressed from last night. it turns out you guys actually, the top of your worst list and your best list was viola, zoe

saldanha, pale strapless piece from a french designer. you loved it, michael. >> i thought it was gorgeous. the hand detailed floral work on top, it was an interesting shape, you know? and i'm kind of a sucker for a belted gown. i like belted gowns. >> do you think it came with the gown or she threw it on? >> i can't tell. it is kind of fashioned and styled in a certain way. the fabric seemed to match but i'm not sure. i thought it was interesting. really good to see something new. >> and was it a -- would you say it was risky? you say it was risky, too risky. >> i say there was too much to look at it. at the bodice, a nice bustline and here we are with this flowered and applique and then a belt to belt, with actually the notches, you know. i'm used to seeing sashes on gown, which i think would have femmenized it a little more and that high low at the bottom, i'm looking at three points at once instead of a long graceful line. that's what i see. we can agree to disagree. >> agree to disagree. monty, you loved jennifer

lawrence. >> yes. >> what do you love about this gown? >> i think her whole look, her hair, her jewelry, the dress. she does need to learn to pick it up when she walks. >> bless her heart. >> i love it, though. and we're seeing an exaggerated pep lum here. we're seeing that in wedding gowns, in ready to wear, in suits, we're seeing it. so that odd layer in the back is just an exaggerated peplum, they dropped it down a little more. and what girl doesn't feel great in a ball gown? >> i thought it was an absolutely gorgeous gown. but the only thing, it wasn't on my top list because we have seen this from her. >> wanted her to step outside the box. >> i did. she does that exaggerated mermaid strapless, like, you know, it is amazing on her. >> that's her look. some people own a look. and my girl jackie owned a look. so, you know, once you get comfortable in a zone, sometimes you don't want to run a risk here. >> it was a lot of strapless, a lot of pale. but halle berry, she's gorgeous, like she could wear a paper bag

and you would be like gorgeous. >> she redeemed herself with the golden globes with the versace. >> you love this? >> i love it. >> did you like it? >> i did. absolutely gorgeous. >> she's got a theme. she went back to 007 and that is a step back in time. we saw a lot of deco influence in new york when we were in new york on the gowns and stuff. here it is on the red carpet. you got to remember girls are inspired by the dresses. of course, inspired by that body helps, but that dress fit a 16th of an inch on her body, incredible fitting. >> i was at the golden globes, i saw her, you were like no one can be that beautiful in person. she's that beautiful in person. who did you not love? you did not love melissa mccarthy's dress? >> i did not. so many things. >> so many things. >> so many. we got a little bit of time here. >> a complete look. the hair didn't work for me. the color of the dress, like, gray, it is just never a good color, i don't think, on anybody, and then just that

inset of black satin or i don't know what that was. it looked like an after thought they added that in. >> what would you have put her in? >> the shape isn't bad. i would have liked it to be closer on her body and bright and beautiful. because she's pretty. a gorgeous woman. >> helen hunt. >> helen hunt, can we go there? shout out to her for wearing an h&m dress. >> here is what i think. i think it looked like everyday wear. it was a longer version of something she probably picked out of her closet and here i think -- >> that necklace wasn't every day. >> here i think you're on the red carpet, you know what you're going to be -- this is a hard carpet to walk on. you walked the red carpet. you stand, you stop, you get photographed. there is 400 photographers, 800 fans yelling at you. that's a lot of people to impress, 400 cameras equal how many viewers? >> a tough crowd. >> tough crowd. >> thank you, guys, so much.

nice to have you on. >> see you on the carpet next year. >> deal. >> red carpet. first lady michelle obama made a surprise appearance, boom, there she was, appearing in front of the white house, presenting a gown she had worn earlier in the night at the governor's ball, presenting for best picture. the audience went crazy. that was her at the inaugural w should have made the appearance at all. from home repair to healthcare written by people just like you. no company can pay to be on angie's list, so you can trust what you're reading. angie's list is like having thousands of close neighbors where i can go ask for personal recommendations. that's the idea. before you have any work done, check angie's list. from roofers to plumbers to dentists and more, angie's list -- reviews you can trust. i love you, angie. sorry, honey.

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everything, all the consumer projects, it's a completely green space of soft machines. for the industry, consigned with the number of degree of freedom and how much it costs. here is a way we could really transform cost of robotics. we'll eliminate all the server motors. the pins and the bearings and the joints. and we will sew you a robot out of fabric and use pressurized fluids to make it work. it will reduce the cost of robots 100 fold. the one behind me weighs one or two pounds. yet is the size of your arm. when fully pressurized, that arm could, you know, lift a humor at arm's length. >> wow. >> there's no hinges and bearings there. it's all done in this fabric. so it's really built like a lot of biological systems that are built. this works much more like a fish or a shark than it does like a robot. personally, it's something that excite us a lot, is prosthetic

applications of this. essentially putting a wearable robot over the human skeleton as a prosthetic device. i think that's a beautiful application.

it was the secret that one academy awards producer described as a secret mission. >> and the oscar goes to -- "argo," for -- >> surprise, first lady michelle obama live from the white house announced the best picture oscar winner last night. ben affleck and team "argo"

picking that up. two of the show's producers spoke to the hollywood reporter and revealed high-powered film producer harvey weinstein's daughter was actually the one having behind michelle obama announce the top prize. aside from the first oscars, the oscars, the first lady has been in the spotlight more recently. tom foreman joining me. tom, just walk me through why michelle obama has been -- she's been like everywhere lately. >> yeah, she has. she said she was going to be a little more out there once the election was over and the inauguration and all of that. on jimmy fallon doing her whole dance thing there. >> the mom dance. >> yeah, yeah, the mom dance. on rachael ray, talking about her bangs, because everyone wants to know about her hair. then she did a psa with big bird on "sesame street." they recorded it. that's where big bird lives so that's where she had to go. then she's been tweeting a lot too. she puts out all sorts of tweets. she said she started during the

campaign and when the campaign's over thought it was a good way to stay in touch with people. she is out there, indeed, brooke. >> everybody agreed this is sort of the new role. the modernized first lady role. is out there and online. and apparently at the oscars. tom foreman, thank you very much. and now music fans just lost one of its great voices. coming up next on this music monday, the songs of the temptations. chances are, you're not made of money, so don't overpay for motorcycle insurance.

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you can't not kind of groove along when you hear this. some sad news for you on this music monday. especially for all you motown lovers. damon harris, former member of the temptations, has passed away. according to his daughter, the 62-year-old singer had been battling prostate cancer for the last 14 years. you may remember harris joined the temptations at the ripe age of 20. replacing one of the group's original lead singers. i was telling my team today, i'll never forget it, one of my very first concerts as a little girl was seeing the four tops and the temptation, together right here in atlanta. here's a little more.